Starting from January 1st, 2022, China will impose temporary import tariff rates on 954 items, that are lower than the most-favored-nation tariff rate.
Firstly, in order to reduce the economic burden of patients and continuously improve the health and well-being of the general public, zero tariffs will be imposed on the new anti-cancer drug, radium chloride, and the import tariffs on certain medical products such as intracranial embolization stents and artificial joints will be reduced.
Import tariffs on certain consumption goods, including high-quality aquatic products such as salmon and cod, clothing for infants, dishwashers, and ski equipment, shall also be reduced.
Zero tariffs are implemented on oil paintings and other artworks that are over 100 years old.
In order to improve environmental quality and promote green and low-carbon development, import tariffs are reduced on gasoline engine particulate traps that can improve vehicle fuel efficiency and reduce exhaust emissions, electronic throttles for automobiles, and peat that can be used for soil remediation.
In order to help the manufacturing industry to optimize and upgrade, import tariffs are reduced on key components such as high-purity graphite accessories, high-voltage cables used in high-speed trains, membrane electrode assemblies for fuel cells, and bipolar plates.
Import tariffs on raw materials required by the processing, daily chemicals, and leather manufacturing industries have been reduced, examples include cocoa beans, animal fur, vegetable essential oils, and other foods.
Import tariffs have been reduced on resource products such as pyrite and pure potassium chloride that are in short supply domestically.
In addition, starting from January 1st, 2022, in accordance with domestic industrial development and changes in supply and demand, within the scope of China’s commitment to the World Trade Organization, import and export tariffs on certain commodities will be increased. Among them, the temporary import tariff rate for some amino acids, lead-acid battery parts, gelatin, pork, m-cresol, etc. will be cancelled, and the most-favored-nation tax rate will be restored; to promote the transformation and upgrading and high-quality development of related industries, the export tariffs of phosphorus and blister copper will be increased.
From July 1st, 2022, China will also implement the seventh step of tax reduction on 62 most-favored-nation tax rates for information technology products. After the adjustment, China’s overall tariff level will continue to maintain the level of 7.4%.
In 2022, treaty tax rates will be implemented on certain commodities originating from 29 countries or regions. Among them, New Zealand, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Pakistan, Georgia, Mauritius and other bilateral free trade agreements and Asia-Pacific trade agreements will further reduce taxes.
Most interestingly, starting from January 1st, 2022, the "Regional Comprehensive Economic Partnership Agreement" (RCEP) and other newly effective free trade agreements will cause a reduction on tariffs in the first year of the implementation of such agreements. After the implementation of RCEP tariff reduction, more than 90% of the goods traded between members will eventually achieve zero tariffs, which will bring new market opportunities for members. Among them, China and Japan have implemented tariff reduction arrangements for the first time.
In conclusion, the general trend of the annual tariff adjustment is downward. This is in line with the need for China to further open up, and also to better build a new pattern of mutual promotion of international and domestic dual cycles. Therefore, from a general point of view, the trend of lowering tariffs has been consistent in recent years.
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